April 18, 2008	Friday	Rabi-us-Sani 11, 1429

KARACHI, April 17: Prices of fine lint soared to Rs3,600 per maund on the cotton market on Thursday as a leading spinner group tried to grab the floating stock, apparently fearing further pressure on supplies.

The notable feature of the session was that trading also resumed in the new crop as a forward deal of 400 bales, from a Sultanabad ginnery was signed at Rs3,600 for Aug 15 delivery, said leading cotton broker Adil Naseem.

For the second time during the last couple of weeks, the rate of fine lint from the southern Punjab cotton belt, known as a producer of contamination-free lint, has touched the new high and brokers predicted that it could well be the beginning of the year-end price flare-up.

Out of the unsold stock of about half a million bales, they said, premium lots may be in short supply but some leading ginners are said to be holding on to their stock of fine lots for better prices, they added.

However, a wide gap of Rs350 per maund in the selling prices of fine and inferior lots at Rs3,600 and Rs3,250 per maund reflects that some of the ginners, both in the central Sindh and southern Punjab cotton belts, may be holding bulk of the unsold stocks.

“The cotton trade seems to have entered a crucial stage and indications are that prices may rise further based on supply and demand factor and no one can stop them,” some cotton analysts said.

Spinners and mills had succeeded in containing prices between Rs3,200 and Rs3,550 per maund for the last couple of weeks on the strength of higher imports but now the market is heading for a tight ginner grip on the future price line, they said.

Meanwhile, the textile sector, which imported another 0.380m bales during March from various sources is trying to contain any future price flare-up in local prices through the strength of higher imports, the total so far being about 3m bales.

News from the world cotton markets, notably New York Cotton Exchange, were bearish as the ruling May and forward July contracts on Thursday suffered a decline of 1.69 and 1.72 cents per lb at 73.54 and 77.11, respectively, on trade selling.

But the local official spot rates were firmly held at the overnight level for an average type, while fine lots were traded well above them.

The following are some of the lots, which changed hands late on Thursday evening: Rs3,500 bales, Khanpur at Rs3,600, and 700 bales, at Rs3,550; 400 bales, Rahim Yar Khan at Rs3,250, 388 bales, Sanghar at Rs3,250; 100 bales, Mitri at Rs3,300 and 800 bales, Buchari at Rs3,350.